Gold Drops Below $1190 on Strong U.S. Housing Data

Gold hovered below $1,200 an ounce on Thursday, following its biggest drop in over a month, as strong U.S. housing data stoked expectations the Federal Reserve would soon hike interest rates.

Spot gold was flat at $1,187.20 an ounce by 0036 GMT, near its lowest in a week.  The metal fell 1.3 percent on Wednesday, its biggest single day decline since March 6.

Bullion took a hit after data showed U.S. home resales surged to their highest level in 18 months in March as more homes came on the market.